<Rental screening startup 100 buys fraud detection firm Cobblestone Labs for undisclosed sum, bolstering fight against rental scams.
100, a platform used by landlords to screen potential tenants, has snapped up a leading anti-fraud player, Cobblestone Labs. The latter's tools, developed by former Ramp engineers, verify income and catch scammers – a crucial step in preventing rental nightmares for both landlords and renters.
Cobblestone Labs has been tackling the $7.9 billion (2023 estimate) rent scam industry using AI and machine learning. These methods help identify suspicious behavior, such as inconsistent income or employment history, and raise red flags for potential fraudsters.
Founded in 2020, Cobblestone Labs has gained recognition within the industry for its innovative approach to detecting rental scams. By integrating Cobblestone’s technology into its own platform, 100 aims to significantly enhance its screening capabilities and reduce the risk of fraudulent activity for its users.
“We’re excited to join forces with the team at Cobblestone Labs,” said 100 co-founder and CEO, Alex Rampell. “Their expertise in AI-driven fraud detection will be instrumental in helping us prevent rental scams and ensure a smoother experience for our users.”
What this means
For renters, this acquisition may bring welcome relief from the fear of scams and potential eviction. By strengthening its anti-fraud measures, 100 hopes to increase trust among landlords and tenants, making the rental process more secure for all parties involved. This development should also encourage more property owners to use rental screening services, potentially reducing the number of scams overall.
